Privatization and Social Equity: A Research Note

Abstract

This brief study outlines ongoing research by the author, research that explores the relationship between levels of privatization and minority¹ employment in the 1980s and 1990s. The privatization of municipal services, either through service contracts between government and industry or through government’s total divestment² of responsibility, often enabled financially strapped communities to maximize efficiency. On the other hand, many observers questioned whether the increased efficiency of contracting out resulted from a decreased emphasis on diversity goals and affirmative action. Employee groups, it may be said, often opposed privatization when a loss of jobs was at stake (see Ferris, 1986, and Murray, 1985). This research note indicates an ongoing exploration of the empirical links between privatization initiatives and diversity commitments.